Can You Ignore Debt and Avoid Bankruptcy?

For people who try to get out of debt, but do not have enough money to settle debt or pay off debt, filing for bankruptcy, the official declaration that you are no longer able to repay your debts, is probably the best debt relief option. However, not everyone would like to take the bankruptcy route. So, can you ignore debt and avoid bankruptcy?

Bankruptcy might be the answer for some people, but for those who have tried all the debt relief options out there, the possible last option, in fact, is just simply ignore debt and do nothing.

Here in this country, you cannot simply be put in jail for not paying your creditors the money you owe. The only time this could happen is for some kind of extreme cases. The key to ignoring debt and doing nothing is that you have to live mainly with just the basic needs until your debts are expired and your creditors can no longer collect your debt legally.

For instance, your creditors may sue you for the debts you owe, take you to the court and get a judgment against you. However, they can not take your basic needs, such as food, housing, clothes, regular household stuff, your car that you need for work, your social security checks or unemployment checks, even if your creditors win in the court. If you have nothing else, your creditors can not take anything from you.

Keep in mind though that you can only live with these basic needs and won’t be able to save any money during this period. If you start earning any income, anything you do not use for you basic needs will be taken away. Your creditors will use the judgment to levy your bank accounts and part of your wages.

Depending on the state you live in, after a certain years, the statute of limitations on your debt will expire and your debt becomes uncollectable legally. If you choose to ignore your debt and do nothing on your debt, then you will live like we just mentioned above until the statute of limitations arrives.

The statute of limitations can vary from each debt you have. Once all your debts are expired, you can start to save money, not to worry about your wages being levied and you are able to apply for new loans. Well, you probably will not quality for new loans or obtaining the new credits you want, but after several years, all debts you owe in the past will be dropped out clean from your credit file.

To be honest with you, this kind of debt relief option takes long time and definitely is not for everyone. However, if you don’t want to file for bankruptcy and know you can’t pay off debt, at least this is an alternative you might want to take into consideration. Before you decide to take this option, please do consult with bankruptcy attorneys or reputable debt help professionals like in debt settlement company to figure out if this is really the best choice for you to get out of debt.